Digital media and marketing software firm Adobe (ADBE) late Thursday beat Wall Street’s targets for its fiscal third quarter, but its guidance for the current period missed estimates. ADBE stock fell in extended trading.
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The San Jose, Calif.-based company earned an adjusted $4.65 a share on sales of $5.41 billion in the quarter ended Aug. 30. Analysts polled by FactSet had expected earnings of $4.53 a share on sales of $5.37 billion in fiscal Q3. In the year-earlier period, Adobe earned an adjusted $4.09 a share on sales of $4.89 billion.
For the current quarter, Adobe forecast adjusted earnings of $4.66 a share on sales of $5.53 billion. That’s based on the midpoint of its guidance. Wall Street was modeling earnings of $4.67 a share on sales of $5.6 billion in the fiscal fourth quarter.
In after-hours trading on the stock market today, Adobe stock tumbled more than 7% to 544.56. During the regular session, ADBE stock climbed 1.1% to close at 586.55.
On Sept. 3, ADBE stock hit a buy point of 580.55 from a cup-with-handle base, according to IBD MarketSurge charts. But it ended the regular session that day below the buy point. It returned to the buy zone on Tuesday. The buy zone extends to 609.58, based on IBD trading guidelines.
Adobe Stock Ranks First In Group
Adobe has been adding generative artificial intelligence tools to its creative and marketing software products. Among application software companies, Adobe is one of the few that have been successfully monetizing generative AI, Deutsche Bank analyst Brad Zelnick said in a client note last week.
On Wednesday, Adobe previewed advancements to its generative AI video capabilities, powered by its Adobe Firefly Video Model. Firefly-powered text-to-video and image-to-video capabilities will be available later this year, the company said.
ADBE stock ranks first out of six stocks in IBD’s Computer Software-Desktop industry group, according to IBD Stock Checkup. Adobe has an IBD Composite Rating of 89 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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